ABC Co. buys in lots of 125 boxes which is a three month\'s supply. The cost per box is $125 and the ordering cost is $250 per order. The inventory carrying cost is estimated at 20% of unit value per year. You are required to ascertain:

i. The total annual cost of existing inventory policy?

ii. How much money would be saved by employing the economic order quantity?

Answer rating: 100% (QA)

Economic Order Quantity EOQ Economic Order Quantity is that Quantity of Inventory which management s... View the full answer